Modelling and Scenario Analysis

Would it help your decision making if you knew precisely how everything impacted cash levels?

Knowing what will happen to cash flows in all situations means you can act to prevent liquidity shortfalls. Driver-based forecasting analysis enables you to model various cash flow forecasting scenarios and understand the impact on cash flows.

Quickly translate budgets into cash forecasts

We know the frustration that can come from reworking budgets into cash forecasts. CashAnalytics makes it easy to break the business budget into its constituent parts to inform the forecasting process.

CashAnalytics enables business drivers (days sales outstanding, payment terms, unit economics, etc.) to be used to build a base case forecast quickly and easily.

This modelling functionality enables you to build a relatively complex data model in the fraction of time that it would take using traditional methods.

Quickly translate budgets into cash forecasts

Create scenarios

Once the base case forecast is established, various alternate versions can be created which allow for a range of different scenarios.

Drivers (such as changes to payment terms or unit prices) can be easily flexed to create different scenarios. Each scenario can then be compared with the base model to test assumptions, favourable or stressed conditions.

Using a process of iteration, the range of scenarios can be adjusted, tuned, and tweaked to consider all potential environments.

Understand the impact of changing business drivers on cash flow

When integrated into the holistic planning process, these scenarios can then be used to measure the impact of various changes, e.g. longer/shorter payment terms, price increases/decreases, supplier costs, etc. on revenues and cash flows.

As all components and drivers are fully reusable, they do not have to be re-built for refreshing forecast versions. Therefore, as data is refreshed, each scenario can be tested again and the impact on revenues and cashflows easily understood.

Being able to accurately measure the cash flow impact of various future scenarios vastly aids strategic planning. Additionally, during a crisis event, the treasury team will be able to quickly advise the business what needs to happen to maintain sufficient cash levels.

Understand the impact of changing business drivers on cash flow

Quickly communicate impacts

Because all of this information is presented graphically, as well as in headline figures, reports can be quickly exported and sent to the CFO and other business leaders.

Therefore, when the CFO knocks on the door of the treasury or finance team looking for answers to specific questions, the response can be prepared and sent quickly and easily.

With impressive data visualisations, definitive quantitative reports, and qualitative analysis, key information can be communicated as efficiently as possible.